J+J Snack Foods: Reports Q2-2018 Sales and Earnings

Pennsauken / NJ. (jj) J+J Snack Foods Corporation, a leading niche snack food and beverage company, announced sales and earnings for the second quarter ended March 31, 2018.

Sales increased 8 percent to USD 266.1 million from USD 246.5 million in last year’s second quarter. Net earnings increased 12 percent to USD 17.8 million in the current quarter from USD 16.0 million last year. Earnings per diluted share increased 12 percent to USD .95 for the second quarter from USD .85 last year. Operating income decreased 2 percent to USD 23.5 million in the current quarter from USD 24.1 million in the year ago quarter.

For the six months ended March 31, 2018, sales increased 13 percent to USD 531.3 million from USD 472.1 million in last year’s first half. Net earnings increased 83 percent to USD 54.1 million in the six months from USD 29.5 million last year. Earnings per diluted share increased 83 percent to USD 2.88 from USD 1.57 last year. Operating income increased 3 percent to USD 44.8 million this year from USD 43.4 million last year.

Net earnings for the current year quarter benefited from a USD 1.9 million, or USD 0.10 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Our effective tax rate in the quarter decreased to 28.7 percent from 35.4 percent last year.

Net earnings for the current year six months benefited from a USD 20.9 million, or USD 1.11 per diluted share, gain on the re-measurement of deferred tax liabilities and a USD 3.9 million, or USD 0.21 per diluted share, reduction in income taxes related primarily to the lower corporate tax rate enacted under the Tax Cuts and Jobs Act in December 2017. Net earnings were impacted by a USD 1.2 million, or USD .06 per diluted share, provision for the one-time repatriation tax required under the new tax law. Excluding the deferred tax gain and the one-time repatriation tax, our effective tax rate decreased to 28.6 percent from 34.8 percent in the prior year six months reflecting the reduction in the federal statutory rate to 21 percent from 35 percent for the last three quarters of fiscal 2018. The gain on the re-measurement of deferred tax liabilities and the one-time repatriation tax are preliminary estimates.

Gerald B. Shreiber, J+J’s President and Chief Executive Officer, commented, «While we are pleased with our overall sales increase, we remain focused on improving our margins, particularly in our food service business».